AUSTIN, Texas - City code technically requires kids with a lemonade stand in Austin to get a permit but not for long.

The City Council approved a measure Thursday that will exempt lemonade vendors from getting permits to sell their drinks. Those permits could cost young entrepreneurs more than $450.

The plane came to light when city leaders waived those fees for Lemonade Day last month - an event that encourages kids to explore starting a business.

"This is really geared toward larger commercial operations. State law specifically allows a municipality to exempt low risk operations like a kid's lemonade stand," said Councilwoman Ellen Troxclair, District 8. ​

One young Austinite has turned her lemonade stand into a nationally known business.

Mikaila Ulmer started making her honey-sweetened lemonade at the age of four. She now has the backing of Shark Tank investor Daymond John.

The city has never ticketed a kid for operating a lemonade stand illegally.